The World Forum - June 20th, 2024

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Canadian, 93, wanted to give her kids a gift. Instead she got slapped with $40K in capital gains tax bill


A gift to her daughter and grandson has left a 93-year-old Ontario woman with sticker shock.

Liz Diachun told CTV News she was planning to give her family two lots on her farm property in Warkworth to help them establish homes. However, her lawyer informed her that despite the land being a gift, it still needed to be appraised at fair market value for tax purposes.

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The two lots were appraised at $125,000 and $145,000, totalling $270,000, leaving Diachun with a tax bill of about $40,000, an amount she said she cannot pay.

“I’m on pension. How am I going to pay for that?” said Diachun. “I’m not one of the wealthy. I’m 93 years old. Who is going to give me a mortgage? Who is going to give me a loan?”

Diachun is hopeful she can still find a way to make the gifts happen but the clock is ticking. Beginning next month, the capital gains tax inclusion rate will increase from 50 per cent to 67 per cent for amounts over $250,000​.